investor day - bny mellon

0 Information Classification: Confidential

Investor Day

March 8, 2018

1 Investor Day 2018

• A number of statements in our presentations, the accompanying slides and the responses to your questions are “forward-looking statements.” Words such as “estimate”, “forecast”, “project”, “anticipate”, “target”, “expect”, “intend”, “continue”, “seek”, “believe”, “plan”, “goal”, “could”, “should”, “may”, “will”, “strategy”, “opportunities”, “trends” and words of similar meaning signify forward-looking statements. These statements relate to, among other things, The Bank of New York Mellon Corporation’s (the “Corporation”) expectations regarding: capital plans, strategic priorities, financial goals, client experience, driving revenue growth, estimated capital ratios and expectations regarding those ratios, preliminary business metrics; and statements regarding the Corporation's aspirations, as well as the Corporation’s overall plans, strategies, goals, objectives, expectations, outlooks, estimates, intentions, targets, opportunities and initiatives. These forward-looking statements are based on assumptions that involve risks and uncertainties and that are subject to change based on various important factors (some of which are beyond the Corporation’s control).

• Actual outcomes may differ materially from those expressed or implied as a result of the factors described under “Forward Looking Statements” and “Risk Factors” in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”) and in other filings of the Corporation with the Securities and Exchange Commission (the “SEC”). Such forward-looking statements speak only as of March 8, 2018, and the Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events. For additional information regarding the Corporation, please refer to the Corporation's SEC filings available at www.bnymellon.com/investorrelations.

• Non-GAAP Measures: In this presentation we discuss some non-GAAP measures in detailing the Corporation’s performance, which exclude certain items or otherwise include components that differ from GAAP. We believe these measures are useful to the investment community in analyzing the financial results and trends of ongoing operations. We believe they facilitate comparisons with prior periods and reflect the principal basis on which our management monitors financial performance. Additional disclosures relating to non-GAAP measures are contained in the Corporation’s reports filed with the SEC, including the 2017 Annual Report, and are available at www.bnymellon.com/investorrelations.

Cautionary Statement

NOTE: All financial data for the Corporation throughout the presentation is as of March 8, 2018 unless otherwise noted.

2 Investor Day 2018

Investor Day 2018 AgendaStart Time End Time Session Speaker

7:15 AM 8:00 AM BREAKFAST/REGISTRATION

8:00 AM 8:05 AMWelcome Valerie Haertel

Global Head of Investor Relations

8:05 AM 8:50 AMOpening Remarks/Strategic Overview Charlie Scharf

Chairman and Chief Executive Officer

8:50 AM 9:20 AMFirm Overview Michael Santomassimo

Chief Financial Officer

9:20 AM 9:50 AMInvestment Management Mitchell E. Harris

Chief Executive Officer, Investment Management

9:50 AM 10:05 AMPershing Lisa Dolly

Chief Executive Officer, Pershing

10:05 AM 10:20 AM BREAK

10:20 AM 10:50 AMAsset Servicing Hani Kablawi

Chief Executive Officer, Global Asset Servicing and Chairman, EMEA

10:50 AM 11:20 AMClearing, Markets and Global Client Management Todd Gibbons

Chief Executive Officer, Clearing, Markets and Global Client Management

11:20 AM 11:30 AMClosing Remarks Charlie Scharf

Chairman and Chief Executive Officer

11:30 AM 12:30 PM Q&A All Speakers

12:30 PM 1:00 PM LUNCH

Investor Day 2018Strategic Overview

Charlie ScharfChairman and Chief Executive OfficerMarch 8, 2018

4 Investor Day 2018

Great history and culture

A strong and unique franchise

Clear, focused,and financially

attractivebusiness model

Continued focuson operating

leverage

Investingfor growth by

• Improving execution

• Expanding technology-enabled solutions

• Leveraging all of BNY Mellon

5 Investor Day 2018

Great history, strong culture and demonstrated ability to change

Proven record and willingness to change and evolve

Strong culture

• Proud

• Client-driven

• Low risk tolerance

• Methodical

• Objective

• Intellectually honest

Great history

• Founded in 1784 by Alexander Hamilton

• First company traded on the NYSE

• Andrew Mellon – one of the longest serving Secretaries of the Treasury

6 Investor Day 2018

Our evolution over time

Business model

Reach

Traditional commercial bank Universal bank

Services company operating within

a bank

Local, mostly in New York

Expanding internationally Global

1970s 1990s Today Tomorrow

Broader

Technology-driven

Service provider for a digital world

7 Investor Day 2018






leverage




• Leveraging allof BNY Mellon

8 Investor Day 2018

NOTE: Revenue and pre-tax income metrics for Investment Services reflect year-end December 31, 2017.

BNY Mellon today – a services company operating within a bank

Asset ServicingPershing

Issuer ServicesTreasury Services

Clearance and Collateral Management

Securities FinanceLiquidity and FX

$11.6BRevenue

$3.8BPre-tax Income

Investment Services

Full range of institutional, clearance, cash management and global payments services

$33.3 trillion AUC/A

>$24 trillion assets on data management platform

7+ million global investor accounts at Pershing with over $1.8 trillion under custody

Clear $1.7 trillion USD per day on average

$2.5 trillion average Tri-party repo balances

• Services business

• Technology dependent

• Moving to technology-driven

9 Investor Day 2018


Asset ManagementWealth Management

$4.0BRevenue

$1.1BPre-tax Income

Investment Management

Diversified globalasset manager:

• Broad range of investment strategies

• 10 specialized managers

• Leading positions in specialized asset management – LDI, Cash, Fixed Income

• $350 billion Index AUM

Strong wealthmanagement business witha comprehensive offering

Institutional and retail investment management

$1.9 trillion AUM7th largest asset manager

$1.3 trillion AUM (institutional)4th largest institutional money manager

Wealth management for individuals, families and endowments/foundations

~$240 billionTotal private client assets

10th largestU.S. wealth manager

NOTE: Revenue and pre-tax income metrics for Investment Management reflect year-end December 31, 2017. See Appendix for additional disclosure regarding rankings.

10 Investor Day 2018


Diversified fee-based businesses

Investment Services

74%of Total Revenue

$11.6BRevenue

$3.8BPre-tax Income

InvestmentManagement

26%of Total Revenue

$4.0BRevenue

$1.1BPre-tax Income

NOTE: Revenue and pre-tax income metrics for Investment Services and Investment Management reflect year-end December 31, 2017. Revenue metrics exclude the Other segment.


Scale is a competitive advantage

All businesses operate at scale

Asset Management • #7 Global Asset Manager

Wealth Management • #10 U.S. Wealth Manager

Asset Servicing • #1 Global Custodian• #1 Securities Lending

Pershing • #1 U.S. Clearing Firm

Issuer Services• #1 Depositary Receipts • #1 Corporate Trust

Treasury Services • #5 U.S. Dollar Clearing


• 83% of U.S. Government Securities

Note: See Appendix for additional information regarding rankings.

Investment Services



Our business is global

U.S. EMEA$10.0 billion; $4.0 billion; 64% of total 26% of total APAC

revenue revenue $1.0 billion; 6% of total

revenue

Other$0.6 billion; 4% of total

revenue

• 36% of revenue in 2017 was generated outside of the U.S.

• Operating in 35 countries…

• …and more than 100 markets

• 47% of employees are outside the U.S.

Global reach is a competitive advantage – and an opportunity

Global reach


Institutions

Corporations

Governments

Central Banks

Family Offices

Sovereign Funds

Asset Managers

Mutual Funds

Hedge Funds

Private Equity

ETFs

Financial Services

Banks

Broker-Dealers

Financial Intermediaries

Insurance Companies

Investment Advisors

Public/Non-Profits

Pension Funds

Local Governments

Endowments

Foundations

Charitable Gift Programs

Individuals

High-Net-Worth Individuals and Families

77%of Fortune 500

Companies

89%of the Top 100 Broker-Dealers

94%of the Top 100

Investment Managers

87%of the Top 100

U.S. Pension and Employee Benefit Funds

96%of the Top 50

Life/Health Insurance Companies

94%of Top 100

Banks World-Wide

Outstanding client franchise



Diversified fee-based businesses

Core custody is an anchor to broader relationships

Custody is an anchor solution

Number of top 100 custody clients using Number of top 5 custody clients using

Accounting 95 1004 of 5

SecuritiesLending 45 100 3 of 5

FX 73 100 5 of 5


Our businesses are naturally multi-product

Entry Core CustodypointsGovernment

Clearing Pershing Wealth Management


Treasury Services

Corporate Trust

Fund Accounting Custody Custody Investments Custody Payments Trustee Services

FX Cash Loans Cash Cash Cash Cash

Part of Securities offering Financing Collateral Cash Loans Multi-strategy

Solutions

Cash

Collateral


These create unique franchises

1. Other includes: Clearance and Collateral Services

Cash and liquidity is a business – enabled by the entire company

Cash sources Cash ($B)

335Investment Management

240Asset Servicing

165Liquidity Services

Sec Lending 160

110Corporate TrustPershing 65

Other 60

$1.1T

BNY Mellon Cash and Liquidity

Capabilities

On- and off-balance sheet solutions

Investments

• Proprietary MMF • Non-proprietary MMF• Collective funds

Deposits

• Foreign interest bearing• U.S. interest bearing• Noninterest bearing

Solutions

• Securities lending cash reinvestment

• Active account management


Collateral is a unique opportunity

BNY Mellon Clients

Asset Servicing Government Securities Clearing Pershing Securities Lending Collateral Management

Dealer services

• Tri-Party Repo

• Collateral Optimization

• Committed Facility

• Term Loans

Cash & Collateral

Buy-side services

• Securities Finance

• Collateral Mobilization

• Cleared Repo

• Peer-to-Peer Repo (DBV-X)

Tri-Party Platform




leverage









BNY Mellon revenue1 by type

Focused on fee-based, recurring revenue

• ~75% of our revenue is fees

• Significant percentage of our net interest income is “fee-like” and predictable

The categories include:− Operational deposits− Low risk loans− Broker-Dealer customer payables

>80% of our revenue is recurring fees or predictable net interest revenue

Recurring

Fee Revenue $11.9

Net Interest Revenue $3.3

Foreign Exchange $0.7and Other Trading

NOTE: Fee revenue excludes Foreign Exchange and Other Trading revenue. Total revenue does not sum to $15.8B due to rounding.1. Reflects a non-GAAP measure. See Appendix for a reconciliation. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelations


BNY Mellon overall operating margin1 growth(includes intangible amortization)

33%31%29%

26%

2014 2015 2016 2017

Adjusted pre-tax operating margin

Strong and growing margins

35%27%

2014 2017

+8%

33%28%

2014 2017

+5%

Operating margin1 growth by business

1. Represents a non-GAAP measure. See Appendix for a reconciliation. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelations

Investment Services



Generating consistent EPS growth with high returns

1. Financial results referenced for the total Corporation are calculated on a non-GAAP operating basis, which excludes merger and integration, litigation and restructuring charges for all periods. Also excluded from 2017 results are the fourth quarter 2017 significant items, which included an estimated net benefit related to the Tax Cuts and Jobs Act (“U.S. tax legislation”), severance and other charges. See Appendix for a reconciliation of these non-GAAP measures.

23.0%

21.4%20.7%

2015 2016 2017

Adjusted return on tangible common equity1Operating earnings per share1

$3.57$3.17

$2.85

2015 2016 2017


Without taking substantial credit and market risk

Loans

Trading Securities

Securities

Cash

2017

Majority of loans in support of operating businesses

<1% trading assets

41% predominantly highly rated, liquid assets

39% of assets in cash

No meaningful derivatives2017 Average Interest

Earning Assets


Consistently returning majority of generated capital to shareholders

Payout of net income ($B)

Share $2.4 $2.4 $2.7Repurchases

DividendsPaid1 $0.9 $0.9 $1.1

$4.1

$3.5$3.2

Total $3.8 $3.2 $3.3 Capital

Return

2015 2016 2017

Payout (share repurchases and dividend)

2017 Capital return payout ratios

Common Dividend Payout Ratio 23%

Share Repurchase Payout Ratio 69%

Total Payout Ratio 92%

NOTE: Total capital return may not foot due to rounding. Net income reflects net income applicable to shareholders. 1. Includes common and preferred dividends.


Earnings growth and capital generation should continue to drive strong returns – 2017 example

Common stock capital return yield

Common Dividend Yield 1.7%

Share Repurchase Yield 5.2%

Total Capital Return Yield 6.9%

Net Income1 Growth After Tax: 9%

NOTE: Capital return yield reflects dividend and share repurchases divided by annualized average market capitalization. 1. Represents a non-GAAP measure. See Appendix for a reconciliation. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelations


Revenue growth rate disappointing – but improving and majority market-driven

Revenue1 growth 2015-2017 ($B)

$15.8

$15.2$15.1

2015 2016 Market-driven Business-driven 2017

+1%

+4%

2014 Investor Day targets

Flat rate environment 3.5%-4.5%

Normalized rate environment

6%-8%

Model has embedded leverage

1% increase in revenue growth…

1% 2-3

…translates to 2-3 percentage pointsof EPS growth

NOTE: Vertical axis truncated. 1. Represents a non-GAAP measure. See Appendix for a reconciliation. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelations




leverage









Continued focus on operating efficiency

Expense1 growth 2014-2017 ($B)

$11.0 $10.7 $10.5 $10.6

All Other Expenses

Operational Expense

Technology Expense

2014 2015 2016 2017

-1%

• Regulatory expenses grew 24% between 2014 and 2017

• Efficiency– Increased volumes– Operational expenses (8%)

Expenses driving margin improvement

1. Reflects a non-GAAP measure. See Appendix for a reconciliation. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelations


Continuing to focus on operating efficiency Select examples

U.S. Transfer Agency

2016-2017

-15.4%

4.6%

Cost Per Transaction

-19.1%

Expenses

Volume

Accounting

2016-2017

2.5%

-0.2%

-2.6%


Expenses

Volume

Core Securities Process

2016-2017

4.0%0.1%

-3.7%


Volume Expenses


Operating efficiencies

So Far Going Forward

• More organizational streamlining and flattening

• Operating center consolidation

• Workflow automation for pricing, accounting, account opening

• Digital transaction capture (faxes, recons, trades)

• More self-service (manual file delivery, “hands free” NAV)

• Integrated pricing and reference data

• Machine learning tools replacing manual functions

• Process engineering and robotics

• Optimizing geographic footprint

• Organizational streamlining and flattening

• More disciplined procurement

• Real estate portfolio

• Digital workplace strategy

• Investing in automation







leverage




• Leveraging all of BNY Mellon


Technology investment increasing – a clear priority for success

…with an incremental ~$300MM planned

~$2.4B spent on technology annually…

~25%

Development ~60%

~75%

Operating platform and cybersecurity ~40%

~$2.4B ~$0.3B

Technology spend going forward

~$2.7B

~55%

~45%

Operating platform must be a priority, while… continuing to expand development resources


Technology investments cut across time horizons

Near-Term InvestmentsMinimize risk as well as increase

reliability and quality

• Technology infrastructure Data centers Network architecture Platform consolidation New test environments Continued cyber enhancements Regulatory enhancements

• Digital examples Electronic trading APIs

Longer-Term InvestmentsStrategic investments across

all businesses

• Pershing Advisor Artificial Intelligence Platform• Digital markets solutions – collateral, financing, liquidity• Blockchain • Componentized Asset Servicing solutions and APIs• Eagle Data Management Platform• Client dashboards for operational oversight• Real-time payments• Data science/analytic tools to support investment process


Growth related initiatives at different stages of development


Today

• 74 new fund launches over last two years• Specialty, alternative, passive strategies• Investment Services partnership• Private Wealth footprint growth

Tomorrow

• Passive/factor-based, multi-asset solutions• Advanced analytics• Grow restructured U.S. active business• Global Asset Management – Europe, Japan, SWFs• Digital portals and solutions

Investment Services

• Continuing technology consolidations• Alternative and ETF servicing platforms• Data management• RIA/Advisor solutions• Cash and Liquidity• Collateral management for sell-side

• Client experience enhancements• Private Equity platform• Digital and real-time payments• Solutions to reach retail investors and advisors• Collateral management for buy-side

Note: SWFs – Sovereign Wealth Funds


And we are changing how we do business

Changing culture

Client-driven Solutions-driven

Great listeners Great synthesizers

Inconsistent and reactive Consistent, quick and proactive

Changing technology

Mainframe DistributedSystems

1970s Now

Gateway

APIs

Digital Pulse

BxP

SM

Client access to BNY Mellon

System-to-system client integration

Tick-level operational data

BNY Mellon’s private cloud

Operating Platform

Deliver constant client coverage and leverage all of BNY Mellon


Improved organic growth will be driven by a series of actions

• Differentiated operating platforms

• Consistent solutions-oriented client coverage

• Business by business focus on execution

• Digital investments

Internal capabilities

External partners

• Management focus

• No silver bullet

• Long sales cycles

• Look for gradual and steady improvements

While we continue focus on operating leverage and EPS growth

Investor Day 2018BNY Mellon Financial Overview

Michael SantomassimoChief Financial Officer March 8, 2018

Investor Day 201837

IntroductionBNY Mellon Financial Overview

Attractive business model

• Dynamic business model delivering long-term value and growth opportunities over time• Diversified and stable business mix with high percentage of recurring revenue

Lower risk profile

• Lower credit and market risk • Strong and liquid balance sheet driven by stable deposits• Consistent returns and proven capital generation

Disciplined execution

• Executed on earnings and capital targets since 2014 Investor Day• Continued focus on efficiency and margin improvement• Returning significant capital while improving capital ratios

Outlook• Investment and capital return priorities• Revenue and operational efficiency initiatives• First quarter 2018 financial outlook

Investor Day 201838

Our investment thesis – delivering consistency over time A dynamic model delivering long-term value to clients and shareholders

Attractive Business Model

• Diversified business mix

• Majority of revenue from recurring fees

• Low risk-weighted assets model enables growth with limited new capital required

• Serving a critical industry

High Risk-Adjusted Returns

• Lower credit risk business model

• Highly liquid

• >20% ROTCE1

1. ROTCE represents the Return on Tangible Common Equity. This is a non-GAAP measure. See Appendix for reconciliations.

Strong EPS Growth

• Industry leader

• Increasing scale benefits

• Positive operating leverage

• Positive capital generation

Investor Day 201839

Investment ServicesBroad set of capabilities

Investment Services

Asset Servicing Pershing


Full range of operational services

Conduct business, invest and transact in markets

around the world

• Custody• Accounting• ETF services• Middle-office solutions• Transfer agency• Private equity and real estate funds

• Broker-dealer and advisor services• Pershing prime services• Registered investment

advisor services

• U.S. government clearing• Global collateral management• Tri-party repo

Markets Treasury Services

Issuer Services

• Foreign exchange• Liquidity services• Securities finance• Capital markets• Prime brokerage

• Trade services• Cash management• Foreign exchange

Corporate Trust • Trustee, administration and

agency services • Reporting and transparency

Depositary Receipts• Issuer services• Support for brokers and investors

Investor Day 201840


Note: See Appendix for additional information regarding rankings.1. Amherst Capital Management is a majority-owned subsidiary of BNY Mellon, and is minority-owned by Amherst Holdings, LLC; 2. BNY Mellon owns a minority interest in Siguler Guff & Company, LP and certain related entities (including Siguler Guff Advisers, LLC).


Asset Management

Wealth Management

Diversified global asset manager

Offering a broad range of investment strategies

from 10 specialized managers

Comprehensive wealth management offering

#7Asset Manager, by Global Assets

Under Management

#10Wealth Manager,

by U.S. Client Assets

1

2

U.S. NewCo

Investment Management and

Advice

Wealth and Estate Planning

Investment Servicing and Information

Management

Private Banking

Investor Day 201841

Diversified, recurring revenue streamSignificant amount of revenue is predictable over time

FY17 – Total Operating Revenue1

($ billions)

% Non-U.S. Revenue

Asset Management 61%

Wealth Management

Asset Servicing 39%

Pershing 9%

Issuer Services 45%

Treasury Services 45%

Clearance and 36%Collateral Services

Other N/M

36%

1%

Total Company 75% 21% 4% $15.8

Revenue % Fee Revenue Foreign Exchange and Other TradingNet Interest Revenue


NOTE: Fee revenue excludes Foreign Exchange and Other Trading revenue.1. Reflects a non-GAAP measure. See Appendix for a reconciliation. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelations

Investor Day 201842

Significant synergies exist across the businesses Serving common clients and delivering complementary capabilities

Asset Management • Cash $100B AUM swept by Investment Services • “Top 5” Asset Servicing client• Investment expertise

Wealth Management• Mortgage capability for Pershing clients• Over $2B in Wealth Management client assets

utilizing Pershing self-directed capabilities

Asset Servicing• FX and Securities Financing• Securities settlement firm-wide Pershing

• Combined bank and brokerage custody • Provides access to advisers for Asset Servicing

clients ($488B in average mutual fund balances)


• >$2.5T in Tri-party balances creates unique buy-side collateral and financing capabilities

Treasury Services • Payment utility $1.7T average daily volume cleared, supporting all BNY Mellon businesses

Issuer Services • 26% of Corporate Trust revenue from BNY Mellon enterprise financial institution relationships Markets • Facilitates buy-side access to collateral and

liquidity solutions, leveraging differentiated tri-party platform capabilities

Relationship Synergies • >75% of firm revenue from clients served by

multiple businesses• Dedicated enterprise management to top ~700 clients

Cost Synergies • >40% of combined technology and operations

expense base devoted to services that support multiple businesses

Investor Day 201843

Investing for the futureFocused strategy to transform the client experience and operating model

Enterprise Priorities

Operational Optimization

Trade Lifecycle Efficiencies

Core Custody, Safekeeping and Clearing

Next Gen Wealth Management

and RIA Technology

Collateral, Payments and Liquidity Management

Illustrative Examples

Automation/Machine Learning

• Auto custody limits• Failure Forecasting

• Optical character recognition• Intelligent matching and routing

Fintech Partnerships

• Real-time payments• Collateral management (Hazeltree)• Bond Liquidity (Algomi)

• Payments (Volante) • Innovation (B-Hive)

Integration• Digital Eyes – financial reporting• Symphony messaging bot• DBVX – repo platform

Blockchain• Utility Settlement Coin• R3 consortium• BDS 360 – resiliency system

• Enterprise Ethereum Alliance

Investor Day 201844

Regulatory outlook showing modest improvementPace of regulatory change slowing but continued execution is key

Progress Since 2014 Current Focus

• Pace of U.S. regulatory change slowed• Implementation of EU regulations; well-positioned for Brexit• Assisting clients with MiFID implications• Regulatory focus on new technologies• EU data standards (GDPR)

GDPR = General Data Protection Regulation MiFID = Markets In Financial Instruments Directive SLR = Supplementary Leverage RatioLCR = Liquidity Coverage Ratio MMF = Money Market Fund UCITS = Undertakings for Collective Investment in Transferable Securities

• Capital: Basel III implementation, Leverage ratio, SLR • Liquidity: LCR, enhanced standards• Recovery and Resolution: Substantial progress in plans• Market Reforms: MMF reform, Tri-party repo reform, MiFID II, UCITS

Investor Day 201845

Lower credit and market riskAverage Interest-Earning Assets

18%20%

2%1%

35% 41%

45% 39%

2014 2017

($13B)$304B

$291B

Loans $4B

Securities $10B

Cash ($25B)

Average yields

1.52%

Total

1.08%

Trading ($3B)Securities

80% of averageinterest-earningassets

NOTE: Totals may not foot due to rounding.

High Quality Securities Portfolio: $118B

>90% of securities portfolio rated AAA/AA-

~75% are U.S. treasury, agency and sovereign securities

High Quality Loan Portfolio: $58B

Margin Wealth Loans

Management

RReal Eeal Eststatate/e, Financial OOververdrdrafafts/ts, Institutions

OOtherther and Commercial

NOTE: Securities and loan percentage metrics reflect averages of 2017 quarterly period-end amounts.

Investor Day 201846

Client deposits drive size of balance sheet

Average Liabilities and Equity – 2014-2017

$373B$344B10%

Shareholders’12% Equity14%

Other12%6% Liabilities5% 8% Long-Term Debt

6% Repos

65% 63% Deposits

2014 2017

($29B)

Interest-bearing

Deposits by Business – 2017

OtherWealth 7%

Management5%

TreasuryServices Asset

18% Servicing51%

CorporateTrust18%

Deposits by Type – 2017

Corporate Trustand Treasury

Services

Noninterest-bearing

Interest-bearing

NOTE: Totals may not foot due to rounding. Other liabilities include payables to customers and broker-dealers, commercial paper, other borrowed funds, trading liabilities, and other noninterest-bearing liabilities.

Investor Day 201847

Business performs well in stress

Reduction in Tier 1 Leverage Ratio after Stress(2017 CCAR Severely Adverse Scenario)

42%38%

23%21%

BNY Northern State U.S. G-SIBsMellon Trust Street Average

Significantly less impact on capital ratios than other

G-SIBs

BNYMellon

Source: Federal Reserve–Comprehensive Capital Analysis and Review (CCAR). NOTE: U.S. G-SIBs peer group average excludes BNY Mellon and State Street. Northern Trust is not designated as a U.S. G-SIB.

Investor Day 201848

Executing since 2014 Investor Day


Financial Performance• Achieved upper end of EPS target • Revenue growth below target range; focused on organic growth• Generated positive operating leverage of ~300 bps

Operational Improvements• Exceeded operating margin goals• Drove operational efficiency gains in most areas• Disciplined expense management

Capital Generation/Distribution

• >$12B in gross capital generated• >$10B in capital distributed

− More than $7B in share repurchases− Almost $3B in dividends

Capital/Liquidity

• 23.0% adjusted return on tangible common equity1 in 2017• Capital and liquidity ratios well above regulatory minimums

− Common equity tier 1 ratio of 10.3% (advanced) – fully phased in1

− SLR of 5.9% – fully phased in1

− Average LCR of 118% at year-end 2017

Investor Day 201849

Reasonable execution versus 2014 Investor Day goals

Growth Investor Day Goals (as published in 2014)

CAGR2015-2017

Operating Results1

Normalized

Revenue 6-8% 2%

Total Company Expense N/A (1%)

EPS 12-15% 14%

Investment ManagementRevenue

Pre-tax Income

8-10%

12-14%

1%

3%

Investment ServicesRevenue

Pre-tax Income

4-6%

10-12%

4%

12%

1. Adjusted for M&I, litigation and restructuring expenses for all periods as well as the impact of U.S. tax legislation, investment securities losses related to the sale of certain securities, severance and asset impairment charges in 4Q17. Results in 2014 adjusted for the impact of gains related to the sales of our equity investment in Wing Hang and the One Wall Street building, a benefit primarily related to a tax carryback claim and a charge related to investment management funds, net of incentives. See Appendix for a reconciliation. NOTE: Investor Day Goals in 2014 reflect 3-year compound annual growth rates presented on a non-GAAP basis and excluded merger and integration, amortization of intangible assets, restructuring and litigation expenses and other non-recurring items. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelations.

Investor Day 201850

2017 Performance

2017 Operating 2017 Better/(Worse)

$ in billions, except EPS

Reported Adjustments Operating1 vs. 2016 Operating

Revenue $15.5 $0.3 $15.8 4%

Expense $11.0 ($0.3) $10.6 $10.4Ex. Intangible amortization

(2%)

Net Income $3.9 ($0.2) $3.8 9%

Operating Margin 30% 3% 33%34%

Ex. Intangible amortization

169bps

Tax Rate 10.8% 14% 24.5% 42bps

EPS $3.72 ($0.15) $3.57 13%

1. Reflects non-GAAP measures. See Appendix for a reconciliation. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelationsNOTE: May not foot due to rounding.

Investor Day 201851

Continued focus on efficiency showing in margin improvementCreating ongoing capacity to invest while delivering operating leverage

Adjusted Pre-tax Operating Margin1 (Including Intangible Amortization)

33%

26%

2014 2017

2014 Investor Day Target Range (Normalized)

BNY Mellon

Operating Efficiency Gains

2015-2017

• Optimizing geographic footprint

• Organizational streamlining and flattening

• More disciplined procurement

• Real estate portfolio

• Process engineering and robotics

• Digital workplace strategy

• Investing in automation


Investor Day 201852

Returning significant capital while improving key ratiosMaintaining returns and ratios within current ranges

Capital Deployment1 ($B)(Cumulative 2015-2017)

Retention17%

($2.0B)

ShareDividends Repurchases23% 60%($2.8B) ($7.4B)

Common Dividends Per Share

2015 2016 2017

$0.68 $0.72 $0.86

SLR2 – Fully Phased-In (Non-GAAP)

5.9%5.6%

4.9%

2015 2016 2017

Regulatory Minimum

with Buffer

Adjusted Return on Tangible Common Equity2 (Non-GAAP)

23.0%21.4%

20.7%

2015 2016 2017

1. Includes common and preferred dividends. 2. Represents a non-GAAP measure. See Appendix for a reconciliation. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelations

Investor Day 201853

Returns driven by consistent earnings and execution of capital distribution plan

Gross Reduction in Shares Outstanding(cumulative: 2015-2017)

5%

3%5% 4%

4%3%

5% 4% 3%

BK Trust Bank ProxyPeer Average Peer Median

2015 2016 2017

16%

BNY Mellon

11% 10%

BNY Mellon vs. Trust Banks Payout Ratios Over Time(2012-2017)

102%98%84% 93% 92% BNY Mellon73%

84%98% 103% 98% 86% 88%

2012 2013 2014 2015 2016 2017

Dividends Share Repurchases BNY Mellon Total Payout

Trust Bank Peers

Source: FactSet and Company filings.

Investor Day 201854

Clear investment priorities and approach to capital deployment

Investment Priorities

Investing in our operating platform and organic growthBusiness line extensions; new products; technology platforms

Acquisition strategy Extend business capabilities and enhance growth opportunity

Capital return to shareholders

Expected investment returns must exceedthat of repurchasing shares

Dividends and Share Repurchase Goals

Total payout ratio of ~100%+

• Dividends: ~20-30%

• Share repurchases: ~80%+

NOTE: Subject to regulatory and other approvals.

Investor Day 201855

Client deposit activity largely as expectedDeposit volatility and NIM expansion with higher interest rates

Average BNY Mellon Deposits ($B)

$250 1.36%1.21%

1.13% 1.15%$200 1.05%0.98%0.97%

$150 $152 $161$134 $165 $157 $143$125

$100

$50 $86$70 $73 $82 $83 $72$58$0

2011 2012 2013 2014 2015 2016 2017

Noninterest-Bearing Deposits Interest-Bearing Deposits Net Interest Margin (NIM)

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

$300

$350 Expectations Going Forward

• Deposits impacted by:‒ Higher rates‒ Reduction in Federal Reserve

balance sheet‒ Growth in economic activity

• Deposit betas will increase as rates rise

• Noninterest-bearing deposits as a percentage of total deposits likely to further decline

• Higher net interest revenue and net interest margin expansion

• Normalized NIM of 1.25%-1.40%

Investor Day 201856

2018 Expense outlook

$11.0B ~1.5%(5%) ~$300MM <1%$10.6B

2017 Adjustments 2017 Incremental All Other FX 2018 Real Estate 2018Reported Operating 2018 Technology Expense Translation Operating Charges Projected

Expense Investment Growth (Offset in ExpenseRevenue)

Operating ~3%Expense

1

~1%+

Expense growth range

1. Operating noninterest expense is a non-GAAP measure and excludes litigation and 4Q17 significant items, merger and integration, and restructuring charges. Significant items in 4Q17 include severance, an asset impairment and investment securities losses related to the sale of certain securities. Additional disclosures regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelations.

Investor Day 201857

First Quarter 2018 – Operating1

Net Interest Revenue 12-14%+ vs. 1Q17

Investment/Other Income

$60-70MM(Expect $40-60MM per quarter)

Securities Gains/(Losses) ~($50MM)

Expense 4-5% vs. 1Q17 (~2% of growth driven by foreign currency translation)

Tax Rate ~19-20%

(Expect 21% effective tax rate for 2018)

2018 Outlook

1. Reflects non-GAAP measures. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorelations

Investor Day 201858

2018 Financial profile – excluding real estate charge

20171 .

Revenue 4%

Expense 2%

Pre-tax Income 10%

Net Income 9%

EPS 12.6%

Operating Margin 32.9%

FX Impact .

Increases both revenue and expense

growth rates

Minimal impact

Assumptions: Equity markets grow ~5% from year-end 2017 Continued normalization of interest rates Normal market volatility

2018

• Continued reasonable operating performance based on 2017 earnings of $3.57

• Operating results will include – $50MM investment portfolio

losses in 1st quarter– Severance– ~$300MM technology

expense increase– Tax reduction to ~21%

(~$200MM)• Expect charge in 4th quarter

related to real estate repositioning

1. Represents non-GAAP measures. See Appendix for reconciliations. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelations

Investor Day 201859

Our investment thesis – delivering consistency over time A dynamic model delivering long-term value to clients and shareholders

Attractive Business Model

• Diversified business mix

• Majority of revenue from recurring fees

• Low risk weighted asset model enables growth with limited new capital required

• Serving a critical industry

High Risk-Adjusted Returns

• Lower credit risk business model

• Highly liquid

• >20% ROTCE1

Strong EPS Growth

• Industry leader

• Increasing scale benefits

• Positive operating leverage

• Positive capital generation

1. ROTCE represents the Return on Tangible Common Equity. This is a non-GAAP measure. See Appendix for reconciliations.

Mitchell E. HarrisChief Executive Officer, Investment ManagementMarch 8, 2018

Investor Day 2018Investment Management


Investment Management – a scaled, global, diversified businessScaled

$1.9TAssets Under Management1

#7Asset Manager, by Global Assets

Under Management2

#1Manager of LDI Assets3

#10Wealth Manager,

by U.S. Client Assets4

#4Institutional

Asset Manager3

#5Sovereign Wealth Fund Manager3

GlobalNet Fee Revenue by Region, 4Q175

$1.9B

$1.4B

U.S. Non-U.S.

Diversified Product Offering% of Assets Under Management by Asset Class, 4Q17

47%

34%

19%

Multi-Asset, Active Equity and Passive and CashAlternatives and LDI Fixed Income

Balanced Client BaseCurrent Client Base as % of Net Fee Revenue, 4Q175

Retail/Intermediary

BNYM Wealth Management

Institutional

0% 10% 20% 30% 40% 50% 60%

1. As of 4Q17; 2. Pensions & Investments/Willis Towers Watson 2016 data, published October 2017; 3. Pensions & Investments 2016 data, published May 2017; 4. Barron’s Top 40 Wealth Management Firms 2016 data, published September 2017; 5. Net fee revenue reflects Investment Management’s 4Q17 annualized total fee and other revenue, net of distribution and servicing expense. Region (U.S. vs. Non-U.S.) based on country of client domicile. See appendix for a reconciliation.


Go-to-market through our portfolio of asset/wealth management companies –our model has a number of advantages

Our Model

Asset Management Companies

Multi- Fixed Alternatives/ Cash Passive EquityAsset Income Specialists

U.S. NewCo

Distribution

Wealth Management

Technology | Operations | Legal | Compliance | Finance | Human Resources

Central Distribution

Asset Management

Company Direct

BNY Mellon

1

2

Benefits…

…For Clients• Broad selection of

investment solutions

• Flexible engagement

…For Asset Management

Companies

• Alignment through shadow equity• Investment process autonomy• Global distribution• Access to scalable services not

core to investment managers• Seed capital

…For Shareholders

• Deep bench of business leaders• Highly diversified business • Complementary to the rest of

BNY Mellon• Increased transparency

1. Amherst Capital Management is a majority-owned subsidiary of BNY Mellon, and is minority-owned by Amherst Holdings, LLC; 2. BNY Mellon owns a minority interest in Siguler Guff & Company, LP and certain related entities (including Siguler Guff Advisers, LLC).


Streamlined our business portfolio to drive scale and better serve our clients –today, six asset management companies comprise ~94% of our business

Focused the Portfolio

2007

# of Asset Management 27 10

Companies

~$35B ~$190BAverage AUM

per Company1

2017

Six At-Scale Companies

Company AUM ($B) % of Total AUM

Leader in global Fixed Income, risk management solutions and Absolute Return investing

$791 42%

U.S. NewCo2

Single and Multi-Asset investment solutions using both Active and Passive strategies

$577 30%

Domestic and offshore Money Market funds and Cash investment solutions

$233 12%

Active manager of Equity, Bond, Multi-Asset, Real-Return and Income solutions

$73 4%

Global Equity management

investment $67 4%

Global sub-investment grade Debt asset management $33 2%

94%1. Average AUM represents Investment Management total AUM as of 4Q17 divided by the number of asset management companies; 2. U.S. NewCo refers to Asset Management North America, the legal entity that combined the former Mellon Capital, Standish and The Boston Company businesses.


Solid margin and earnings growth since our last Investor DayOur Financial Performance

EarningsGrowth1

2014-2017 Change %

40.0%

15.1% 12.0% 11.4% 9.7% 9.2% 8.9%

-7.1% -8.5%

-29.2%Peer 1 Peer 3 Peer 5 Peer 4 BNYM Peer 2 Peer 8 Peer 9 Peer 7 Peer 6

IM2

Growth in net margin and earnings attributed to cost discipline, focused execution, and positive net flows in LDI, Multi-Asset and Alternatives …

Net MarginGrowth1

2014-2017Change %

3.5%2.5% 2.1%

1.2% 0.9%

-0.2%

-3.3%-4.9% -4.9%

-6.1%Peer 1 BNYM Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9

IM2

Our Business Exposure

Equity Exposure

Active Equity AUM as Percent of Total

AUM, 2017 9%

BNYM IM

31%

Peer Average

Non-U.S. Exposure

Percent of Net Fee Revenue Earned from

Non-U.S. Domiciled Clients, 2017

42%

BNYM IM Non-U.S. Net Fee Revenue3

…despite low equity markets exposure and significant non-U.S. exposure

1. Peers include: BlackRock; Eaton Vance; Franklin Templeton; Invesco; J.P. Morgan Asset Management; Legg Mason; Natixis; Schroders; T. Rowe Price. Peer data sourced from company filings; 2. See appendix for a reconciliation. Peers are presented on the same basis where information is disclosed; 3. Non-U.S. net fee revenue reflects Investment Management’s 4Q17 annualized total fee and other revenue, net of distribution and servicing expense earned from non-U.S. domiciled clients.


Continue to deliver strong investment performance % of Long-Term Active AUM Ahead of Benchmark

1-Year

97%93%86%

68%

46%

Equity Fixed Multi-Asset LDI TotalIncome and

Alternatives2

BNY Mellon1

Industry3 48% 69% 35%4 N/A 58%

3-Year

98%93% 89%

77%

43%


Alternatives2

62% 73% 58%4 N/A 67%

5-Year

96%90%

84%

72%

53%


Alternatives2

68% 74% 31%4 N/A 69%

1. As of 4Q17. Includes all discretionary Active AUM. If an account has multiple benchmarks, the benchmark that is most representative of that account’s strategy was used; 2. Multi-Asset and Alternatives category includes: a) Multi-Asset strategies that invest in two or more asset classes such as Equities, Fixed Income, Currencies, Commodities, Derivatives; b) Single-Asset strategies such as Absolute Return Currency, Commodities, Market Neutral and Long/Short, REITs, Real Assets; and c) Structured Fixed Income strategies such as CLOs, Direct Lending, Distressed Debt, Bank Loans. 3. As of 4Q17. Information provided by eVestment, which is a self-reporting data source and thus only select products across asset managers are reported. Data may include non-discretionary AUM. AUM for which no benchmark was provided was excluded from the computation; for all AUM included, the primary benchmark provided by eVestment was used; 4. The Multi-Asset and Alternatives category includes: Fund of Funds, Hedge Funds, Long/Short, MLPs & REITs, Real Assets, Multi-Asset.


Executing on our strategy within a dynamic operating environment

Dynamic Operating Environment

Low Yield Environment

Product BarbellSince 2008, Industry Traditional Active AUM down 12%,

Passive up 7%, Alternatives and Solutions up 5%1

Technology Fee CompressionSince 2012, industry fees down 13%2

RegulationLow Organic Growth

Industry growth has slowed to 1% post-crisis vs. 4% pre-crisis1

Demographics Profits Under PressureIndustry profit pool below 2007 levels1

Strategy for Growth

1 Continue pivoting product strategy to anticipate client demand • Build on leading positions in LDI, Cash, Private Debt• Continue to restructure U.S. Traditional Active• Expand Passive and Alternatives capabilities

2 Leverage our multi-distribution model to extend our reach

3 Expand Wealth Management’s reach in high-growth markets and client segments

4 Harness synergies across BNY Mellon

5 Invest in technology and infrastructure

1. BCG 2016 data, published July 2017. Traditional Active is equivalent to Core Active as defined by BCG (i.e. includes actively managed domestic Large-Cap Equity, domestic Government and Corporate Debt, Money Market, and Structured products); 2. Casey Quirk 2016 data, customized report published in 2017. Industry fee rates implied based on global AUM and revenue pool estimates.


1 CONTINUE PIVOTING PRODUCT STRATEGY TO ANTICIPATE CLIENT DEMAND

Continue to evolve our product offering to meet changing client needsBusiness Mix Change Driven by Growth in LDI, Multi-Asset

and Alternatives; Outflows in Active Equity and Index

Assets Under Management by Asset Class2014-2017

3Y Net Flows ($B) 1Y Net Flows ($B)

$1.7T $1.9T +$5 +$63

LDI

ulti-Asset and Alternatives

30%

10%

35%

11%

+$111 +$50

+$29 +$8Active Equity

Active Fixed Income

Index

Cash

11%

11%

21%

17%

9%

11%

18%

16%

-$60 -$14

– +$6

-$78 -$17

+$3 +$30

2014 2017

M

Actively Repositioning our Product Portfolio

Recent Launches, Mergers, Closures or Repricing Actions, 2016-20171

Example Launches

LDI, Multi-Asset and

Alternatives

32

Launched

15

Merged, Closedor Repriced

• Direct Lending and Mezzanine

• Income Equity Multi-Asset• Collateralized Loan

Obligations

Active Equity and Fixed

Income

33

Launched

60


• Mobility Innovation• Internet of Things• Global Credit Buy

and Maintain

Index and Cash 15

Launched

9


• Customized Beta Solutions

• Ultra-Short Income

1. Launches include new products plus extensions of existing products into new markets. Mergers, closures or repricing data excludes institutional separate accounts.


CONTINUE PIVOTING PRODUCT STRATEGY TO ANTICIPATE CLIENT DEMAND

Expanding our passive capabilities with a focus on both “building blocks” for multi-asset solutions and specialty beta products

6th Largest Index ManagerTop Index Managers ($B)1

Peer 1 $3,683

Peer 2 $3,301

Peer 3 $1,934

Peer 4 $484

Peer 5 $445

NY Mellon $325

Peer 6 $303

Peer 7 $160

Peer 8 $143

Peer 9 $140

Approximately75% of total Index assets

B

Our Strategy

1

• Expand the range of Passive/Factor-based strategies we offer to accommodate growing demand for “building blocks” from our Multi-Asset solutions businesses

• Develop customized Beta solutions, such as Single-Factor, Multi-Factor and Enhanced Index strategies, where there is a greater ability to differentiate and align more closely with clients’ unique investment objectives

• Expand sub-advisory partnerships with leaders in the Passive/ETF space

1. Pensions & Investments data as of June 2017. Peers include: BlackRock; Geode; Invesco; Legal & General; Northern Trust; Nuveen; PGIM; State Street; Vanguard.


Insight is one of our key engines of growth1 CONTINUE PIVOTING PRODUCT STRATEGY TO ANTICIPATE CLIENT DEMAND

Continue Building on Our Growth Momentum

A Leading U.K. Manager

• Founded in 2002, with offices in London, New York, Sydney

• Second largest U.K. asset manager1

• Nearly $600B in LDI assets in 2017

• 750 professionals globally

Delivered Strong Growth

• Pioneer in LDI and outcome-based investing

• Developed a comprehensive set of investment capabilities(from LDI, Cash and Currency management to Fixed Income,Absolute Return and Alternatives)

• Created customized solutions to meet investors’ unique needs (e.g., risk profile, inflation sensitivity, currency exposure, liquidity)

• Delivered growth through strong investment performance and excellence in risk management and client service

2014 2017

Strategy to Expand

Capabilities and Reach

Deliver components for

the next phase of Insight’s evolution

• Longevity

• Integrated Solutions

• Secured Finance

• Retirement

$791B

$565B Liability Driven

Assets Under 75% Investments (LDI)78%Management Fixed Income, Multi-Asset,22% 25% Alternatives, Overlay

CAGR

Revenue Growth2

2014 2017

10%

Build out U.S. business

• U.S. LDI

• Absolute Return

• U.S./Global Credit

• Emerging Markets Debt

1. IPE 2016 data published June 2017; 2. Insight is based in the U.K. and its 2014-2017 revenue CAGR in local currency (GBP) was 19%. The 10% CAGR shown on the chart represents Insight’s 2014-2017 revenue growth, as measured in BNY Mellon’s reporting currency (USD).


1 CONTINUE PIVOTING PRODUCT STRATEGY TO ANTICIPATE CLIENT DEMAND

Restructuring our U.S. business to create a scaled, relevant multi-asset manager

Combined Three LargeBusinesses in the U.S…

U.S. NewCo: A $577B AUM Asset Manager1

BNY Mellon to merge units to create $560bn fund powerhouse

– Financial Times2

BNY Rolls Up Three Boutiques Into One Multi-Asset Giant

– FundFire3

…In Order to…

• Pivot from areas that are under threat (Traditional Active) to areas of opportunity (Multi-Asset)

• Drive scale

• Increase the depth and breadth of resources available to serve our clients

• Bring the “best of each firm” together to improve client outcomes and experiences

• Consolidating fundamental, macro and quantitative research to augment and systematize investment processes

• Combining trading in a single platform to increase our positioning with trading partnersand leverage more robust data sets and tools

• Realizing synergies in management, support functions and middle/back-office and redeploying savings towards investment talent and new technology

• Consolidating distribution to increase client reach

…Now Executing on a Strategy for Growth

1. As of 4Q17; 2. Published November 13, 2017; 3. Published November 14, 2017.


2 LEVERAGE OUR MULTI-DISTRIBUTION MODEL TO EXTEND OUR REACH

Differentiated distribution model to support our businesses

Multi-Distribution Model% of Asset Management Net

Fee Revenue as of 4Q171

52%48%

Asset CentralManagement Distribution

Company Direct

Net $1.3B $1.2BRevenue

Key Roles

Asset Management Company Direct

• Institutional (in local markets)• Specialized (e.g., LDI, Alternatives)• Consultant-driven sales

Central Distribution• Intermediary vehicles (e.g., Mutual Funds,

Collectives, UCITS, SMAs)

• Help our asset management companies grow their international footprint

BNY Mellon

• Partnership across BNY Mellon to serve large clients

Current Focus

• Expand product vehicle offeringsGlobal

• Clarify branding

North America

• Address challenges in/refresh U.S. Intermediary

• Refine product needs by channel

• Raise profile of our Non-U.S. asset management companies

EMEA

• Grow in Continental Europe• Diversify U.K. Retail business • Pivot towards Active

for Sovereigns

APAC

• Build on momentum in Japan Retail

• Deepen relationships with Asian Sovereign Institutions

1. Net fee revenue reflects Asset Management’s 4Q17 annualized total fee and other revenue, net of distribution and servicing expense. See appendix for a reconciliation.


3 EXPAND WEALTH MANAGEMENT’S REACH

Strong Wealth Management franchise with a comprehensive offeringA Premier Wealth

Management Franchise

#10Wealth Manager,

by U.S. Client Assets1

>$200BClient Assets2

~$12BClient

Deposits3

36Offices in the

U.S., along with 4 Non-U.S.2

>18,000Relationships spanning HNW Individuals and

Institutions4

97%Client Retention

Rate2

96%Client Satisfaction

Rate5

Differentiated Business Model

Client-Centric Model

Conflict-Free

Comprehensive Wealth Offering

Centralized Investment Process

Wealth Strategist

Private Banker

Fiduciary Specialist

Family Advisor Wealth

Manager

Key Benefits of a Combined Assetand Wealth Management Business

Benefits to Asset Management• Access to High-Net-Worth channel

Benefits to Wealth Management

• Co-design solutions tailored to client needs

• Direct access to specialist investment talent

• Institutional quality products

1. Barron’s Top 40 Wealth Management Firms 2016 data, published September 2017; 2. As of 4Q17; 3. Represents average 4Q17 balance; 4. Institutions include Family Offices, Endowments and Foundations; 5. Based on BNY Mellon Wealth Management's 2017 Client Satisfaction Survey.


3 EXPAND WEALTH MANAGEMENT’S REACH

Wealth Management has delivered solid results – strategy focused onhigh-growth markets and segments

Consistent Pre-tax Income Growth…Pre-tax Income

+10% CAGR

2010 2011 2012 2013 2014 2015 2016 2017

…and Solid Performance Relative to Peers

4.7%

3.6%

1.4%

-0.4% -0.6%

Peer 1 BNYM Peer 2 Peer 3 Peer 4WM

2014-2017 Fee Revenue CAGR vs. Peers1

Growth Strategy

Increase sales coverage in key growth markets

Expand and deepen referral networks

Customize offering to better serve high-growth client segments

Upgrade infrastructure to provide a premier client experience

Increase access to innovative Alternatives solutions

1. Companies’ financial filings. Peers include: Bank of America (Global Wealth and Investment Management); J.P. Morgan (Wealth Management), assumes all net interest income attributable to Wealth Management business; Northern Trust (Wealth Management); UBS (Wealth Management Americas).


4 HARNESS SYNERGIES ACROSS BNY MELLON

Leveraging the advantages of being part of BNY Mellon

Connections Between Investment Management and the Rest of BNY Mellon

BNY Mellon Investment

Management

Asset Servicing• Investment Management is a

Top 5 client of Asset Servicing1

Pershing• Wealth Management provides banking

and insurance solutions to Pershing clients

• Wealth Management leverages the Pershing platform to extend self-directed capabilities to clients

• Wealth Management partners with Pershing on technology solutions

Markets• Markets provides foreign exchange,

derivative strategies and liquidity management solutions for Wealth Management clients

Enterprise Relationships• Partnership across BNY Mellon to

serve large clients

Cash Management• Investment Management’s Cash Investment

Strategies manages over $100B for Investment Services platforms/portal2

Balance Sheet• BNY Mellon provides over $900MM in

seed capital for our asset management companies2

• Asset Management manages BNY Mellon treasury and pension fund assets

• Balance sheet enables Wealth Management to provide credit and lending services to clients

1. Funds managed by BNY Mellon Investment Management collectively represent a Top 5 client of Asset Servicing on a revenue basis. 2. As of 4Q17


Clear set of priorities for 2018:

1 Product Strategy: Build on leading positions in LDI, Cash and Private Debt; expand Alternatives and Passive capabilities; complete restructure of U.S. Traditional Active business

2 Distribution: Refresh U.S. intermediary; selective buildout of APAC and Europe; simplify brand and messaging

3 Wealth Management: Continue focus on high-growth client and market segments

4 BNY Mellon Synergies: Seed new products; grow enterprise relationships

5 Technology and Infrastructure: Advance the consolidation of U.S. operations and trading; connect data science to enhance investment processes

Recap – Strategic focus in key areas to drive business performance

• Proven ability to execute and maintain relentless cost discipline• Understand the changing macro environment and anticipating shifting client needs

Investor Day 2018Pershing

Lisa DollyChief Executive Officer, PershingMarch 8, 2018


Pershing is an industry leader serving the world’s top clients

Strength, Scale and Stability

#1 Clearing Firm by

Broker-Dealer Clients1

$1.8T+Assets Under Custody and/or Administration

$500B+Mutual Fund

Assets

7MM+Global Investor Accounts

49MMSecurities Positions

~1,400Clients

21MMMutual Fund Positions

Note: As of December 31, 2017. 1InvestmentNews, Top Clearing Firm Ranking, 08/17.


Majority of Pershing revenue is recurring

% of 2017 Revenue

TransactionalRevenue

19%

Asset- and Account-Based Fees

62%Net Interest

Revenue

19%

Revenue Category Driver

Transactional Revenue

Clearance Trades

Trading Trades

Net Interest Revenue

Interest Balances

Asset- and Account-Based Fees

Mutual FundsPositions

Assets

Money Market/FDIC Funds Balances

Retirement Accounts Accounts

Custody Assets, Services

Technology Services


Positioning clients for opportunityRemaining relevant to financial intermediaries for almost 80 years

• Business and Practice Management• Thought Leadership• Advisor and Marketing Programs

• Financial Solutions • Data Analytics• Technology Platforms

• Core Clearing and Custody • Wealth Management

Delivering Increased Value

to Clients

Time

eulaV

ONGOING SUCCESS

STRONG FOUNDATION

Client base has expanded over time: Broker-Dealers | RIAs | Family Offices | Hedge/‘40 Act Funds | Wealth Managers


Pershing’s growth by the numbers

Total Revenue CAGR ($B)

1.72.1

2012 2017

+4.9%

U.S. Active Accounts CAGR ($MM)

6.15.5

2012 2017

+2.0%

Total U.S. Positions CAGR ($MM)

49

35

2012 2017

+6.8%

Assets Under Custody and/or Administration CAGR ($T)

1.8

1.2

2012 2017

+7.9%


Connecting product manufacturers and clients

Mutually Beneficial Relationships

with Solution Providers

ClientsBreadth and Variety of Our Clients

~800 Broker-Dealers

~500 RegisteredInvestment Advisors

~100 Hedge/’40 Act Funds

~100,000 Investmentprofessionals

Product ManufacturersDepth and Choice Across Our Platform

800 Fund families

60 Insurance carriers

130 ETF managers

500 Separately managed account managers


Comprehensive solutions from BNY Mellon

Private Banking $5B+ loan facilities

Cash Management $25B+ cash sweep balances

Asset Servicing 19MM custody subaccounting positions

Integrated Custodian Technology $22B assets under bank custody or administration

Integrated Collateral Management ~$50MM in assets already pledged from first client


Technology as a business enabler


Delivering integrated proprietary and third-party solutions

Wealth Planning

Client Onboarding

Trade/Order Management

Proposal, Model Management

and Performance

Aggregation/Portfolio Analytics

Digital AdviceProspecting and Client

Relationship

Note: Pershing has over 400 third-party solutions including those providing market data and analytics. The above are examples specific to technology integration. Trademark(s) belong to their respective owners.


Navigating a shifting landscape to deliver value to clients

Capitalizing on trends to evolve our strategy…

Global Growth of High-Net-Worth Investors

Shift from Commission to Fees

Regulatory Change

…and deliver value

Next Generation Wealth Management

Platforme-Delivery

Client Onboarding Capabilities API Capabilities

Enterprise Forms and Customized Letter

Solutions

Third-Party Investment Management Modeling

e-Signature Data Vault


Summary

More thana clearing firm

Uniqueset of capabilities

A platform of sizeand scale

Powered bystructural change

Diversified revenue streams not dependent on trade volumes

Investor Day 2018

We’ll be returning shortly

Investor Day 2018Asset Servicing

Hani KablawiChief Executive Officer, Global Asset Servicing and Chairman, EMEAMarch 8, 2018


Leading global asset servicerScale

$33.3TAssets under custody and/or administration

88MMSettlements processed

per year

$1.1TCash managed and

serviced across BNY Mellon

~8MMNAVs

in 2017

>$24TUtilizing BNY Mellon’s

Eagle Data Management capabilities

~200MMSubaccounting and

Transfer Agency transactions processed in 2017

61%

28%

11%

North America EMEA Rest of World

Investment Managers 83 of top 100 are clients

Diverse client segments

Global reach% of Total Revenue 2017

Pensions/Pension Administrators 47 of top 100 are clients

Hedge Funds 16 of top 20 are clients

41Insurance of top 50 Life/Health insurance companies are clients

Sovereign Funds 7 of top 10 funds are clients



Breadth and depth of capabilities, many profitable solutionsAsset Servicing Client

Chief Risk Officer

I Need…

Controls

Regulatory Roadmaps

Control Dashboards

Asset Security Safekeeping

InformationSecurity Recordkeeping

Cybersecurity Outsourcing Oversight

Chief Operating

Officer

Chief Technology/ Data Officer

I Need…

Efficiency

Fund Accounting Custody

Real Estate and Private Equity

AdminETF

Servicing

Cost Transparency APIs

Hedge Fund Admin

Real-Time Positions

Transfer Agency

Middle Office Outsourcing

Chief InvestmentOfficer

I Need…

Performance

Performance and Risk Analytics FX

Securities Finance Equities

Collateral Management

Fixed Income

Cash Management

Head of Distribution

I Need…

Growth

New Market Distribution Access Analytics

Intermediary Platform

Data Management


Highly predictable revenue – expanding client relationships from the core

Net Interest 23% Deposit and loan balancesIncome

FX and Other 9%Trading FeesSpreads on FX, Sec Lending and other markets revenues

Transactional fees from client volumes

Fee 68%Revenue Asset based fees on market value

Structural fees on accounts

Sample solutions

Value-chain Core

CollateralOptimization

Examples of Middle Office Components

CollateralManagement

Lending Digital Investor Platform Client Reporting

FX

Cash

CashManagement

Transfer Agency/Subaccounting

Middle Office Outsourcing

Investment Book of Record

Derivatives Administration

Custody Fund Accounting

TradeProcessing

Data Management

Durability

Majority of revenue from fees


Performance since 2014 Investor Day

Drivers of performance

Strengthenedcore andexpandedmargins

• Exited lower margin, lower return businesses

• Leveraged talent in lower cost locations

• Significantly advanced our platform consolidation strategy

• Improved client profitability and new business discipline

• Increased operating capacity while reducing costs

• Expanded digital integration with our clients

Solutionsand Growth

• $4.4T in AUC/A growth, including $2.7T in wins

• Added $3.6T of assets supported on BNY Mellon Eagle technology

• Delivered platforms for Real Estate, Hedge Funds, ETFs

Outcomes

Pre-taxMargin 633 bps1

RevenueGrowth

3.2% 2014-2017

CAGR



Evolving client needs while fee pressure continues

Substantial change on multiple dimensions

Low Yield Environment

Lower than normal rates create return challenges

Technology Accelerating innovation changes the investment process

Financial Sector Regulation

Increasing compliance costs and distribution complexity

Demographics Aging population and retirement risk shifting to individuals

Clients increasingly demand

Digital Solutions

Cost Efficiency

Risk Management

Regulatory Compliance


Focus going forwardMaintain expanded margins and focus on accelerating fee growth

Continuing tostrengthen our core

and improveoperational efficiency

• Automate by enhancing workflow, increasing digital intake of data, and deploying machine learning

• Provide operational transparency

• Continually focus on strengthening our operating platform

Building solutionsand integrating with clients

1 Competing more effectively in the core businessCustody, Fund Administration, Investor Solutions

2 Serving faster-growing Alternative and ETF managersPrivate Equity, Real Estate, Hedge Funds, ETFs

3 Delivering industry-leading data management solutionsSoftware solutions, integration, analytics, APIs

4 Creating markets capabilities that enhance client outcomesTrading, financing, collateral, liquidity

5 Helping our clients service their investor baseEnd investors, distribution efficiency/effectiveness


1 Competing more effectively in the core business

Enhancements to the core…

Efficiency

Quality

Client Experience

…are improving our competitive position…

• Preferred partner – scale and capability

• Substantial number of large deals have come to market in recent years

• New outsourcing as well astake-away business

• Solutions developed for these large clients can be delivered to the rest of our client base

…resulting in wins

• Significant wins in 2017

• $575B in new AUC/A in 4Q17

• Expanding existing relationships

• Growing the pipeline: 21% growth in the number of opportunities from 2016 to 2017


2 Serving faster-growing Alternative and ETF managers

Growing assets Outsourcing trend Capitalizing on the opportunity Strong and growing positionIndustry AUM, 2013-17 CAGR1

Real Estate$3.1T / 12.8% • Accelerate global expansion

• Leverage scale to adjacent client segments

7of top 20

Real Estate Fund Managers2

Hedge Funds$3.6T / 5.9% • Deepen existing client relationships

• Expand enterprise solutions

16of top 20

Hedge Fund Managers3

Private Equity$4.1T / 5.8%

• Explore strategic opportunities to accelerate scale

5of top 20

Private Equity Firms4

ETF$4.8T / 15.1%

• Deliver comprehensive ETF platform solutions

3rd

largest ETF Administrator and Custodian5

1. National Council of Real Estate Investment Fiduciaries (NCREIF), the European Association for Investors in Non-Listed Real Estate Vehicles (INREV), and the Asian Association for Investors in Non-Listed Real Estate Vehicles (ANREV) Annual Fund Manager Survey Report and 2017E based on 2016 AUM adjusted per Q1 and Q2 NCREIF Fund Index-Open End Snapshot results (for Real Estate); Preqin Yearly Global Hedge Fund Reports (for Hedge Funds); Preqin. 2017E based upon December 31, 2016 adjusted for funds closed in first half 2017 (for Private Equity); ETFGI.com (for ETFs); 2. Preqin Special Report: The Real Estate Top 100 (Sep 2017), 3. Preqin League Tables Sep 2017), 4. Preqin Special Report: The Private Equity Top 100 (Feb 2017), 5. 2017 Mutual Fund Service Guide


•

3 Delivering industry-leading data management solutions

Overview

Eagle was founded in 1989; acquired by Mellon Financial in 20011

• Data Management solutions for largest Asset Managers and Owners

• Extended solutions for Accounting, Performance Measurement and Attribution

• 1,000 FTEs in 15 global locations; more than ⅔ of employees in technical roles

Well-established offering

>$24Tutilizing BNY Mellon’s Eagle

Data Management capabilities

16 of 25largest Global Asset Managers2

62 of top 200Global Asset Managers2

Central to what we do

• Widely used to support key Asset Servicing clients across the Asset Manager, Asset Owner, and Insurance segments

• 19 of Asset Servicing’s top 50 clients are also Eagle’s clients

• Eagle services over 50% of BNY Mellon’s Investment Management companies

1. Bank of New York merged with Mellon Financial Corporation to form Bank of New York Mellon in 2007; 2. Defined as global buy-side investment management companies with $15B AUM or greater


4 Creating markets capabilities that enhance client outcomesIntegrated markets solutions for our clients

Trading/Execution Securities Finance Peer-to-Peer Lending Collateral Management Cash and Liquidity Credit Intermediation

Buy-side need for collateral services increasing

• Increased buy-side peer-to-peer financing demand for collateral as dealers reduce balance sheets

• Growing demand for sourcing cash as eligiblecollateral for margin trades

• Buy-side firms seek to enhance yields

• Increased appetite for direct lending

• HQLA demand increasing

• Regulatory mandates drive need for buy-side margining and collateral transformation services

15.2

Repo 10.9

Sec 2.2Finance

Margin 2.1

2017 Market collateral

demand, $T

We are uniquely positioned to serve both sides of the trade

Sell-side clients Buy-side clients

Tri-Party Repo Securities Lending

Term Loans BNY Mellon Platforms

Collateral Administration

Collateral Mobilization

Collateral OptimizationCleared Repo

Committed Facility Peer-to-Peer Repo

Data sources: International Securities Lending Association 7th Edition ISLA Securities Lending Market Report (Securities Finance), EU Repo, US Repo: Tri-Party, Bilateral, Margin, Euroclear: Annual Reports, 2017HY Report, Clearstream: 2015, 2016, and 2017.


5 Helping our clients service their investor base

Third-Party Subaccounting and Transfer Agency Account Volumes1 (MM)

Capturing shift of investor positions from investment managers to distributors

Subaccounting158 Accounts

Transfer 109 Agency

Accounts103

2011 2012 2013 2014 2015 2016

175

• Distributors have consolidated positions to brokerage platforms, away from investment manager recordkeeping platforms

• The fiduciary standard and the shift to fee-based models are further accelerating this trend

BNY Mellon is the largest subaccounting provider

Third-Party Subaccounting Market Share2

26%

145MMAccounts

74%

BNY Mellon Other Third-Party Providers

• Strong market position serving distributors

• Synergies with Pershing createcompetitive advantage

Our opportunities

1. Subaccounting is increasingly important to Investment Managers

2. Transfer Agency remains a core component of the Investment Manager solution set

3. Digital front-end extends subaccounting platform to servenew types of clients:

• Investment Manager direct-sold accounts

• Investable Health Savings Accounts

• U.S. State-Sponsored Plans (college savings, retirement, and disability)

1. Mutual Fund Services Guide – Years 2012 through 2017; 2. 2017 Mutual Fund Services Guide


Positioned for growth

Why clients have chosen us

Trust and scale

Breadth and depth of services and solutions

Client-centric culture

Subject matter expertise

Unique data and technology assets

Investment Management, cash and passive capabilities

Markets for trading, financing, collateral, liquidity

High quality, low risk balance sheet

Pershing capabilities for advisors and investors

Enterprise synergies Focus going forward

Efficient operating platform

1 Competing more effectively

2 Alternatives and ETFs

3 Data management

4 Markets capabilities

5 Investor servicing

Sustainable growth in revenue and earnings

Investor Day 2018Delivering Differentiated Solutions to Clients

Todd GibbonsChief Executive Officer, Clearing, Markets and Global Client ManagementMarch 8, 2018


Delivering broad servicing capabilities to our clients

Investment

t Management

us T

rod

el

odel

onal M

ti Asset Servicing

M ank

adi

ank B

TrB al Markets B

ser (Securities Lending and FX)

NY

v

ni

M

U

el

Treasury Ser

onl

vices Model

Issuer Services

Pershing


Clients Served

Investors Intermediaries Issuers

Key Points:

• Service capital market participants, not just investors

• Multiple foundational products offering alternative relationship entry points

• Breadth enables greater expertise, deeper client relationships and more high-value services


Building valuable and enduring relationships with our top clientsGlobal Client Management (GCM) consists of teams of senior bankers with deep industry expertise in our client segments

GCM Clients account for

approximately

50%of revenue

Represent long-term relationships with significant upside

Offer buy- and sell-side clients expertise and solutions

Engage all businesses with an average uptake of six or more services

Global footprint with executives positioned in every client region


Deepening client relationships by connecting clients to our companyBreadth of Top Client Relationships

AssetServicing


TreasuryPershing MarketsServicesIssuer

ServicesInvestment

Management

sen

teg

mS

ient

l

C

Banks,Broker-Dealers,

Advisors67% 32% 31% 86% 65% 60% 32%

Corporates,Governments, Not-for-Profits

76% 3% 1% 53% 80% 79% 52%

Insurance 87% 2% 40% 72% 82% 88% 70%

Investment Management 83% 9% 40% 36% 77% 54% 8%

Percentages represent approximately top 700 clients who use multiple high-value services


Case Studies

1. Identify Needs 2. Solve Problems 3. Build Enduring Relationships


Client Solution – Regional Institutional Broker/Dealer


Client Solution – Large Asset Manager


Client Solution – Large Insurance Client


BNY MellonDifferentiators

Client Solution – Large Insurance Client


Client Solution – Universal Bank


BNY Mellon DifferentiatorsClient Solution – Universal Bank

112 Investor Day 2018Investor Day 2018

Key takeaways

DistinctiveModel

Deep Client Relationships

SustainableGrowth==

Investor Day 2018Closing and Outlook

Charlie ScharfChairman and Chief Executive OfficerMarch 8, 2018


2019 Financial growth and margin profile

20171 . 2019 .

Revenue 4% Growth rate slightly up vs. 2017

Expense 2% Growth rate slightly up vs. 2017

EPS 12.6% Low- to mid-double digit

Operating Margin 32.9% ~75-100bps from 2018 (excluding 2018 real estate charge)

Assumptions: Equity markets grow ~5% from year-end 2018 Continued normalization of interest rates

1. Represents non-GAAP measures. See Appendix for reconciliations. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelations


2017 Revenue growth rates are differentiated across businesses FY2017 (est.) 4Q17 (est.)

% of Total Revenue

Pershing 10% 14%

Treasury Services

Clearance andCollateral Management

9%

8%

8%

7%35%

Wealth Management 8% 7%

Corporate Trust 6% 6%

Asset Management

Asset Servicing

6%

2%

10%

7%

61%2pt increase =

1.2% change vs. 2017 growth rate

Depositary Receipts

Other Segment

(18%)

(34%)

(50%)

(49%)

4% 1.2pt drag vs. 2017 growth rate

4% 7%

Stronger

Weaker

Note: Revenue percentages include estimation of allocated Credit Services revenue.



Sources of increased revenue growth – different by business

Asset Servicing

• Core custody and accounting growth: Improving win rates, reducing attrition• Real Estate, Hedge Fund, Private Equity and ETF solutions• Data Management solutions for buy-side• Relationship expansion with high-value markets and retail-investor solutions

Issuer Services• Corporate Trust – Increase salesforce, relationships, expanded products• Depository Receipts – Focus on profitability not growth

PershingTreasury Services

Clearance and Collateral ManagementSecurities FinanceFX and Liquidity

• Expanded client technology platform, RIA platform• Real-time payments• Collateral management• Securities Finance, e-FX capabilities

Investment Management• LDI, Cash, Private Debt• Expand Passives and Alternatives• Wealth Management


Key messages

• Strong and unique franchise

• Clear, defined and financially attractive business model

• Will maintain our risk profile

• Will maintain our shareholder friendly capital return (subject to approvals)

• Focus on continuing to improve performance

• Expect to continue investing while increasing operating margins– Expense increases to be paced with revenue growth– Investments include existing operating platform, expanding business resources and digital capabilities

• Focused on incrementally increasing organic revenue growth year-by-year

Investor Day 2018

Q&A


Appendix


Financial profile – revenue and expense growth reconciliation

($MM) 2016 2017Growthvs. 2016

Fee and other revenue–GAAP $12,073 $12,165

Income from consolidated investment management funds–GAAP 26 70

Net interest revenue–GAAP 3,138 3,308

Total Revenue–GAAP $15,237 $15,543 2.0%

Net income attributable to noncontrolling interests of consolidated investmentmanagement funds (10) (33)

U.S. tax legislation (4Q17) – 283

Other charges (a) – 37

Total Revenue, as adjusted–Non-GAAP $15,227 $15,830 4.0%

Total noninterest expense–GAAP $10,523 $10,957 4.1%

M&I, litigation and restructuring (49) (106)

Other charges (a) – (203)

Total noninterest expense–Non-GAAP $10,474 $10,648 1.7%

(a) Other charges impacting total revenue include investment securities losses related to the sale of certain securities recorded in the fourth quarter of 2017. Other charges impacting total noninterest expense include severance and an asset impairment both recorded in the fourth quarter of 2017. .


Financial profile – net income and EPS growth reconciliationReconciliation of net income ($MM) and diluted EPS

($MM, except per share amounts) Net Income

2016Diluted

EPSNet

Income

2017Diluted

EPSNet income applicable to common shareholders–GAAP $3,425 $3.15 $3,915 $3.72

Impact of M&I, litigation and restructuring charges–after-tax $33 $0.03 $86 $0.08

(Recovery) impairment charge related to Sentinel–after-tax ($8) ($0.01) – –

Net benefit related to U.S. tax legislation (4Q17) – – (427) (0.41)

Severance, asset impairment and securities losses–after-tax (4Q17) – – 181 0.17

Net income applicable to common shareholders–Non-GAAP $3,450 $3.17 $3,755 $3.57

Adjusted Net Income ($MM) and EPS Growth 2016Net Income

2017 Growthvs. 2016

Net income applicable to common shareholders–GAAPNet adjustments

Net income applicable to common shareholders–Non-GAAP

$3,42525

$3,450

$3,915(160)

$3,755

14%

9%

Diluted EPSEarnings per share–GAAP

Net adjustments$3.150.02

$3.72(0.15)

18%

Earnings per share–Non-GAAP $3.17 $3.57 13%

NOTE: Total EPS may not foot due to rounding.


Total revenue and noninterest expense reconciliation

($MM) 2014 2015 2016 2017

Fee and other revenue–GAAP $12,649 $12,082 $12,073 $12,165

Income from consolidated investment management funds–GAAP 163 86 26 70

Net interest revenue–GAAP 2,880 3,026 3,138 3,308

Total Revenue–GAAP

Net income attributable to noncontrolling interests of consolidated investment management funds

U.S. tax legislation (4Q17)

$15,692

(84)

–

$15,194

(68)

–

$15,237

(10)

–

$15,543

(33)

283

Other charges (4Q17) – – – 37

Total Revenue, as adjusted–Non-GAAP $15,608 $15,126 $15,227 $15,830

Total noninterest expense–GAAP $12,177 $10,799 $10,523 $10,957

M&I, litigation and restructuring (1,130) (85) (49) (106)

Other charges (a) – – – (203)

Total noninterest expense–Non-GAAP $11,047 $10,714 $10,474 $10,648

(a) Other charges impacting total revenue include investment securities losses related to the sale of certain securities recorded in the fourth quarter of 2017. Other charges impacting total noninterest expense include severance and an asset impairment both recorded in the fourth quarter of 2017.


Income before income taxes – Non-GAAPGrowth

($MM) 2016 2017 vs. 2016

Total Revenue–GAAP $15,237 $15,543 2%Net income attributable to noncontrolling interests of consolidated investment management funds (10) (33)



Total Revenue, as adjusted–Non-GAAP $15,227 $15,830 4%

Total noninterest expense–GAAP $10,523 $10,957 4%M&I, litigation and restructuring (49) (106)

Other charges (a) – (203)

Total noninterest expense–Non-GAAP $10,474 $10,648 2%

Provision for credit losses (11) (24)(Recovery) impairment charge related to Sentinel (13) –

Income before income taxes—GAAP $4,725 $4,610 (2%)

Adjusted income before income taxes—Non-GAAP $4,751 $5,206 10%

(a) Other charges include severance, an asset impairment and investment securities losses related to the sale of certain securities.


Consolidated operating margin – Non-GAAP($MM) 2014 2015 2016 2017Income before income taxes–GAAP $3,563 $4,235 $4,725 $4,610Less: Net income attributable to noncontrolling interests of consolidated investment management funds 84 68 10 33Add: Gain on the sale of an investment in Wing Hang (490) – – –

Gain on the sale of the One Wall Street building (346) – – –M&I, litigation and restructuring charges 1,130 85 49 106Charge related to investment management funds, net of incentives 104 – – –(Recovery) impairment charge related to Sentinel – 170 (13) –Tax legislation – – – 283Other charges (a) – – – 240

Income before income taxes–Non-GAAP $3,877 $4,422 $4,751 $5,206

Fee and other revenue–GAAP $12,649 12,082 $12,073 $12,165Income from consolidated investment management funds–GAAP 163 86 26 70Net interest revenue–GAAP 2,880 3,026 3,138 3,308

Total Revenue–GAAP $15,692 $15,194 $15,237 $15,543Less: Net income attributable to noncontrolling interests of consolidated investment management funds 84 68 10 33Add: Gain on the sale of the One Wall Street building (490) – – –

Gain on the sale of an investment in Wing Hang (346) – – –Tax legislation – – – 283Other charges (a) – – – 37

Total Revenue, as adjusted–Non-GAAP $14,772 $15,126 $15,227 $15,830

Pre-tax operating margin 23% 28% 31% 30%Pre-tax operating margin–Non-GAAP 26% 29% 31% 33%NOTE: Pre-tax operating margin reflects income before taxes divided by total revenue.(a) Other charges impacting total revenue include investment securities losses related to the sale of certain securities recorded in the fourth quarter of 2017. Other charges impacting income before taxes include severance, an asset impairment and investment securities losses related to the sale of certain securities all recorded in the fourth quarter of 2017. .


Investment Management operating margin – Non-GAAP($MM) 2014 2017 CAGR

2014 –2017Total Revenue–GAAP $3,931 $3,997 1%Less: Distribution and servicing expense 423 422

Adjusted total revenue, net of distribution and servicing expense $3,508 $3,575

Total noninterest expense–GAAP $3,039 $2,854 (2%)Less: Charge related to investment management funds, net of incentives 104 –

Other charges – 4Q17 severance and litigation – 30Adjusted total noninterest expense, excluding charge related to investment management funds,net of incentives and Other charges (4Q17 severance and litigation) $2,935 $2,824

Amortization of intangible assets (118) (60)Provision for credit losses – 2

Income before income taxes–GAAP $892 $1,141Adjusted income before income taxes, excluding amortization of intangible assets, charge related to investment management funds, provision for credit losses and other charges (4Q17 severance and litigation) $1,114 $1,233 3%

Adjusted income before income taxes, excluding provision for credit losses and other charges (4Q17 severance and litigation) $996 $1,173

Pre-tax operating margin–GAAP 23% 29%

Adjusted income before income taxes, excluding charge related to investment management funds, provision for credit losses and other charges (4Q17 severance and litigation) 28% 33%

NOTE: Pre-tax operating margin reflects income before taxes divided by total revenue.


Investment Services operating margin – Non-GAAP($MM) 2014 2017 CAGR

2014 –2017Total Revenue–GAAP $10,350 $11,585 4%

Total noninterest expense–GAAP $8,241 $7,747 (2%)

Less: Litigation (4Q14) 702 –

Other charges–4Q17 severance, litigation and an asset impairment – 233

Adjusted total noninterest expense, excluding litigation and Other charges $7,539 $7,514

Amortization of intangible assets (175) (149)

Provision for credit losses (21) (7)

Income before income taxes–GAAP $2,130 $3,845

Adjusted income before income taxes, excluding amortization of intangible assets, provision for credit losses and other charges (4Q17 severance and litigation) $2,986 $4,220 12%

Adjusted income before income taxes, excluding provision for credit losses and other charges (4Q17 severance and litigation) $2,811 $4,071

Pre-tax operating margin–GAAP 21% 33%

Adjusted income before income taxes, excluding provision for credit losses and other charges (4Q17 severance and litigation) 27% 35%

NOTE: Pre-tax operating margin reflects income before taxes divided by total revenue.


Historical performance – revenue and expense growth reconciliationCAGR

($MM) 2014 2017 2015–2017

Fee and other revenue–GAAP $12,649 $12,165

Income from consolidated investment management funds–GAAP 163 70

Net interest revenue–GAAP 2,880 3,308

Total Revenue–GAAP $15,692 $15,543 (0%)Net income attributable to noncontrolling interests of consolidated investment management funds (84) (33)

Gain on the sale of the One Wall Street building (490) –

Gain on the sale of an investment in Wing Hang (346) –



Total Revenue, as adjusted–Non-GAAP $14,772 $15,830 2%

Total noninterest expense–GAAP $12,177 $10,957 (4%)M&I, litigation and restructuring (1,130) (106)

Charge related to investment management funds, net of incentives (104) –

Other Charges (a) – (203)

Total noninterest expense–Non-GAAP $10,943 $10,648 (1%)

(a) Other charges impacting total revenue include investment securities losses related to the sale of certain securities recorded in the fourth quarter of 2017. Other charges impacting total noninterest expense include severance and an asset impairment both recorded in the fourth quarter of 2017.


Historical performance – EPS growth reconciliation

Reconciliation of net income ($MM) and diluted EPS 2014 2017

($MM, except per share amounts) Net Income

Diluted EPS

Net Income

Diluted EPS

Net income applicable to common shareholders–GAAP $2,494 $2.15 $3,915 $3.72Gain on the sale of an investment in Wing Hang (315) 0.27 – –

Gain on the sale of the One Wall Street building (204) 0.18 – –

Benefit primarily related to a tax carryback claim (150) 0.13 – –

Litigation and restructuring charges 860 0.74 – –

Charge related to investment management funds, net of incentives 81 0.07 – –

Benefit related to U.S. tax legislation (4Q17) – – (427) (0.41)

Other charges (a) – – 246 0.24

Other – – 21 0.01

Net income applicable to common shareholders–Non-GAAP $2,766 $2.39 $3,755 $3.57

Adjusted EPS Growth2014

Diluted EPS

2017

CAGR

2015–2017

Earnings per share–GAAPNet adjustments

$2.150.24

$3.72(0.15)

Earnings per share–Non-GAAP $2.39 $3.57 14%NOTE: Total EPS may not foot due to rounding.

(a) Other charges include severance, an asset impairment and investment securities losses related to the sale of certain securities all recorded in the fourth quarter of 2017.

.


Supplementary leverage ratio – Non-GAAP Fully Phased-In (Estimated) ($MM) 2015 2016 2017

Consolidated:Total Tier 1 capital $18,612 $19,911 $21,339

Total leverage exposure:Quarterly average total assets $368,590 $344,142 $350,786Less: Amounts deducted from Tier 1 capital 19,403 18,887 19,892

Total on-balance sheet assets, as adjusted 349,187 325,255 330,894

Off-balance sheet exposures:Potential future exposure for derivative contracts (plus certain other items) 7,158 6,021 6,603Repo-style transaction exposures 440 533 1,086Credit-equivalent amount of other off-balance sheet exposures (less SLR exclusions) 26,025 23,274 21,960

Total off-balance sheet asset exposures 33,623 29,828 29,649Total leverage exposures $382,810 $355,083 $360,543

SLR–Consolidated (a) 4.9% 5.6% 5.9%

The Bank of New York Mellon, largest bank subsidiary:Tier 1 capital $15,142 $17,708 $19,768

Total leverage exposure $316,270 $290,230 $296,224

SLR – The Bank of New York Mellon (a) 4.8% 6.1% 6.7%

(a) The estimated fully phased-in SLR (Non-GAAP) is based on our interpretation of the U.S. capital rules. The minimum required SLR is 3% and there is a 2% buffer, in addition to the minimum, that is applicable to U.S. G-SIBs. The insured depository institution subsidiaries of the U.S. G-SIBs, including those of BNY Mellon, must maintain a 6% SLR to be considered “well-capitalized.”


Return on tangible common equity – Non-GAAP ($MM) 2015 2016 2017

Net income applicable to common shareholders of The Bank of New York Mellon Corporation–GAAP $3,053 $3,425 $3,915

Add: Amortization of intangible assets 261 237 209Less: Tax impact of amortization of intangible assets 89 81 72Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation

excluding amortization of intangible assets–Non-GAAP 3,225 3,581 4,052

Add: M&I, litigation and restructuring charges 85 49 106(Recovery) impairment charge related to Sentinel 170 (13) –Tax legislation – – 283Other charges (a) – – 240

Less: Tax impact of M&I, litigation and restructuring charges 29 16 20Tax impact of (recovery) impairment charge related to Sentinel – – –Tax impact of tax legislation – – 710Tax impact of Other charges (a) 64 (5) 59

Net income applicable to common shareholders of The Bank of New York Mellon Corporation, as adjusted–Non-GAAP (b)

$3,387 $3,606 $3,892

Average common shareholders’ equity $35,564 $35,504 $36,145Less: Average goodwill 17,731 17,497 17,441

Average intangible Assets 3,992 3,737 3,508Add: Deferred tax liability–tax deductible goodwill (c) 1,401 1,497 1,034

Deferred tax liability–intangible assets (c) 1,148 1,105 718Average tangible common shareholders’ equity $16,390 $16,872 $16,948

Return on tangible common equity–Non-GAAP 19.7% 21.2% 23.9%Adjusted return on tangible common equity–Non-GAAP (b) 20.7% 21.4% 23.0%

(a) Other charges include severance, an asset impairment and investment securities losses related to the sale of certain securities all recorded in the fourth quarter of 2017. (b) Non-GAAP information for all periods presented excludes amortization of intangible assets and M&I, litigation and restructuring charges. Non-GAAP information for 2017 also excludes the positive impact of the U.S. tax legislation and other charges, both recorded in the fourth quarter of 2017. Non-GAAP information for 2016 and 2015 also excludes the (recovery) impairment charge, respectively, related to the loan to Sentinel. (c) Deferred tax liabilities are based on fully phased-in Basel III capital rules. Deferred tax liabilities at Dec. 31, 2017 have been remeasured at the lower statutory corporate tax rate.


($B) 2015 2016 2017 Total 2015–2017

Net Income Applicable to Shareholders $3.2 $3.5 $4.1 $10.8

Other Comprehensive Income (1.0) (1.2) 1.4 (0.7)

Share Issuances (Benefit Plans) 0.6 0.7 0.7 2.0

Change in Goodwill and Intangibles 0.5 0.6 (0.9) 0.2

Capital Generation $3.4 $3.7 $5.3 $12.3

Common Dividends ($0.8) ($0.8) ($0.9) ($2.4)

Preferred Dividends (0.1) (0.1) (0.2) (0.4)

Dividends (Common and Preferred) ($0.9) ($0.9) ($1.1) ($2.8)

Share Repurchases (including Benefit Plans) (2.4) (2.4) (2.7) (7.4)

Capital Retention $0.1 $0.4 $1.5 $2.0

Capital generation and deployment

NOTE: Totals may not foot due to rounding.


Key regulatory ratios

BHC Regulatory Capital Ratios RegulatoryMinimums1

Regulatory Minimums with Buffers as Phased-In2018 2019

BNY

2016

Mellon Actual2

2017Capital conservation buffer (CET1) N/A 1.875% 2.5% 0.625% 1.25%U.S. G-SIB Surcharge (CET1) N/A 1.125% 1.5% 0.375% 0.75%

Standardized:CET1 Ratio N/A 7.5% 8.5% 12.3% 11.9%Tier 1 Capital Ratio 6.0% 9.0% 10.0% 14.5% 14.2%Total Capital Ratio 10.0% 11.0% 12.0% 15.2% 15.1%

Advanced:CET1 Ratio N/A 7.5% 8.5% 10.6% 10.7%Tier 1 Capital Ratio 6.0% 9.0% 10.0% 12.6% 12.7%Total Capital Ratio 10.0% 11.0% 12.0% 13.0% 13.4%

Leverage Capital Ratio2 N/A 4.0% 4.0% 6.6% 6.6%SLR N/A 5.0% 5.0% 6.0% 6.1%

Estimated Common Equity Tier 1 (fully phased-in): Standardized Approach 8.5% 7.5% 8.5% 11.3% 11.5%Advanced Approach 8.5% 7.5% 8.5% 9.7% 10.3%

Estimated SLR (fully phased-in) 5.0% 5.0% 5.0% 5.6% 5.9%Estimated SLR (Bank) (fully phased-in) 6.0% 6.0% 6.0% 6.1% 6.7%

Other Ratios RegulatoryMinimums1 2018 2019 2016 2017

Liquidity Coverage Ratio 100% 100% 100% 114% 118%

1. Reflects regulatory minimums for well capitalized. 2. Reflects ratios as of year-end.


Comprehensive capital analysis and review – severely adverse scenario

Bank Holding Company Ticker/Identifier

Tier 1 Leverage Ratio (%)

Actual 4Q16 MinimumStress Impact

Stress Impact (%)1

BNY Mellon BK 6.6 5.2 1.4 21%

Northern Trust Corporation NTRS 8.0 6.2 1.8 23%

U.S. Bancorp USB 9.0 6.5 2.5 28%

Wells Fargo & Company WFC 8.9 6.3 2.6 29%

Capital One Financial Corporation (Adjusted) COF 9.9 6.4 3.5 35%

PNC Financial Services Group PNC 10.1 6.4 3.7 37%

State Street Corporation STT 6.5 4.0 2.5 38%

Bank of America Corporation BAC 8.9 5.4 3.5 39%

JPMorgan Chase & Co. JPM 8.4 5.0 3.4 40%

Citigroup C 10.1 6.1 4.0 40%

HSBC North America Holdings HSBC 9.6 5.2 4.4 46%

Morgan Stanley MS 8.4 4.2 4.2 50%

Goldman Sachs Group GS 9.4 4.5 4.9 52%

American Express Company (Adjusted) AXP 11.6 5.5 6.1 53%

U.S. GSIBs (Average) – Ex. BNY Mellon and State Street – 9.0 5.3 3.8 42%

NOTE: U.S. G-SIBs shown in bold font. 1 Stress impact (%) reflects the absolute stress reduction in Tier 1 Leverage as a percentage of the Tier 1 Leverage at end of 4Q16.


Tax rate reconciliation

($MM) 2016 2017 Growthvs. 2017

Income Before Income Taxes–GAAP $4,725 $4,610 (2%)Impact of M&I, litigation and restructuring charges 49 106

Impact of tax legislation – 283

Impact of (recovery) impairment charge related to Sentinel (13) –


Income Before Income Taxes–Non-GAAP $4,761 $5,240

Income tax expense–GAAP $1,177 $496Tax impact of M&I, litigation and restructuring charges 16 20Tax impact of tax legislation – 710Tax impact of (recovery) impairment charge related to Sentinel (5) –Tax impact of other charges (a) – 59

Adjusted income tax expense—Non-GAAP $1,187 $1,285

Tax Rate—GAAP 24.9% 10.8%

Adjusted Tax Rate 24.9% 24.5% 42bps

(a) Other charges impacting income before taxes include severance, an asset impairment and investment securities losses related to the sale of certain securities all recorded in the fourth quarter of 2017.


Financial reconciliationPre-tax Operating Margin – Investment Management business

($MM) 2017 2014 2017 vs. 2014Income before taxes - GAAP $1,141 $892 27.9%

Add: Amortization of intangible assets $60 $118 (49.6%)

Charge related to investment management funds, net of incentives – $104 N/M

Severance, litigation and other charges $35 $12 N/M

Adjusted income before income taxes excluding amortization of intangible assets, the charge related to investment $1,236management funds, net of incentives, severance, litigation and other charges – Non-GAAP $1,127 9.7%

Add: Provision for credit losses 2 – N/M

Adjusted income before income taxes excluding amortization of intangible assets, provision for credit losses, the charge related to investment management funds, net of incentives, severance, litigation and other charges – Non- $1,238 $1,127 9.9%GAAP

Total revenue – GAAP $3,997 $3,931 1.7%

Less: Distribution and servicing expense $422 $423 (0.3%)

Adjusted total revenue, net of distribution and servicing expense – Non-GAAP $3,575 $3,508 1.9%

Pre-tax operating margin 28.6% 22.7% 5.9%

Adjusted Pre-tax operating margin excluding amortization of intangible assets, provision for credit losses, the charge 34.6%related to investment management funds, net of incentives, severance, litigation and other charges – Non-GAAP 32.1% 2.5%


Net Fee Revenue – Investment Management business

($MM) Ann. 12/31/17Full-Year

2017

Total fee and other revenue $3,760 $3,668

Less: Distribution and servicing expense $420 $422

Adjusted fee and other revenue, net of distribution and servicing expense – Non-GAAP $3,340 $3,246

Asset Management $2,520 $2,466

Wealth Management $820 $780

Adjusted fee and other revenue, net of distribution and servicing expense – Non-GAAP $3,340 $3,246

Financial reconciliation


U.S. G-SIBs and corporate peer groups

US G-SIB Members

BNY MellonBank of America

Citigroup

Goldman Sachs

JP Morgan Chase

Morgan Stanley

State Street

Wells Fargo

11-MemberCorporate (Proxy) Peer Group

BlackRock

Charles Schwab

Franklin Resources

JP Morgan Chase

Morgan Stanley

Northern Trust

PNC Financial Services

Prudential Financial

State Street

U.S. Bancorp

Wells Fargo


Disclosures

• Banks Word-Wide– Banks around the World, Copyright 2017

• Money Manager (Asset Manager)– Pensions & Investments, Copyright 2017

• Asset Manager Worldwide– Willis Towers Watson, Copyright 2017

• Institutional Money Manager– Pensions & Investments, Copyright 2017

• Manager of LDI Assets– Pensions & Investments, Copyright 2017

• Sovereign Wealth Fund Manager– Pensions & Investments, Copyright 2017

• U.S. Wealth Manager– Barron’s “America’s Top 40 Wealth Management Firms”,

Copyright 2017• Fortune 500

– Fortune magazine, Copyright 2017 Time Inc.

• Broker-Dealers– Investment News, Crain Communications Inc.,

Copyright 2018• Pensions and Employee Benefits

– Pensions & Investments, Copyright 2017• Life and Health Insurance Companies

– A.M. Best Company, Inc., Copyright 2017• Hedge Fund Managers

– Preqin League Tables, Copyright 2018• Sovereign Funds

– Sovereign Wealth Funds, Pensions and Institutional Investors, Copyright 2018

• Global Custodian, Securities Lending, U.S. Clearing Firm, Depositary Receipts, Corporate Trust and U.S. Dollar Clearing– Corporate Trust ranked by dollar volume. Depositary

receipts services to sponsored DR programs globally– Disclosed on BNY Mellon publicly available data

investor day - bny mellon

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